Banks to Cut Overdraft, Non-Sufficient Fund Fees in Response to Market Pressures

Financial institutions including Wells Fargo & Co. and Bank of America Corp. are cutting overdraft and non-sufficient funds fees in 2022 as competitive pressure mounts from neobanks and regulators seek to increase their oversight of the issue.

Several other banks announced changes to their fees in January and February, including Truist Financial Corp., First Interstate BancSystem Inc. and First Citizens BancShares Inc. These alterations could carry a significant price tag.

The banks are responding to the popularity of neobanks, which have amassed large valuations and tout accounts without fees. Officials from Wells Fargo and several other financial institutions said they are willing to sacrifice millions of dollars in fees to keep their customers and address concerns raised by regulators, including the Consumer Financial Protection Bureau.

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